TX Rail Products Reports Financial Results for Third Quarter of Fiscal 2026
Rhea-AI Summary
TX Rail Products (OTC: TXRP) reported third quarter fiscal 2026 unaudited results, with revenue rising 62.5% year over year to $3.0 million and net income increasing 30.8% to $388,687, or $0.01 per share, on 45 million weighted average shares.
Gross margin for the quarter declined to 26.1% from 29.8% due to higher tariffs and product mix, while SG&A rose 38.6% to $368,876. For the nine months ended June 30, 2026, revenue grew 64.8% to $10.0 million and net income rose 52.7% to $1.29 million, or $0.03 per share. Operating cash flow turned positive at $98,216 versus a prior-year use of $583,715. According to TX Rail Products, it anticipates full‑year 2026 revenue growth of at least 50% over 2025, although no assurance is given.
Positive
- Q3 2026 revenue up 62.5% year over year to $3.0 million
- Q3 2026 net income up 30.8% year over year to $388,687
- Nine‑month 2026 revenue up 64.8% to $10.0 million
- Nine‑month 2026 net income up 52.7% to $1.29 million
- Operating cash flow improved to +$98,216 vs. –$583,715 year over year
- Stockholders’ equity increased to $2.72 million from $1.44 million at September 30, 2025
Negative
- Q3 2026 gross margin declined to 26.1% from 29.8% year over year
- Nine‑month gross margin fell to 25.3% from 26.5% year over year
- SG&A expenses up 51.4% year over year to $1.17 million for nine months
- Interest expense rose to $87,516 for nine months vs. $24,426 prior year
- Cash balance decreased to $22,726 from $111,213 at September 30, 2025
- Accounts payable increased to $1.50 million from $119,737 at September 30, 2025
News Market Reaction – TXRP
In the Jul 28 session, TXRP gained 5.63%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Revenue Increased
63% to$3.0 Million - Profitable Growth Continues with Net Income up
31% - Positive Operating Cash Flows Reflect Operational Strength
- Reaffirms 2026 Full-year Revenue Growth Outlook
ASHLAND, Ky., July 28, 2026 (GLOBE NEWSWIRE) -- TX Rail Products, Inc. (OTC Markets PINK: TXRP), a supplier of rail and rail products to the U.S. coal mining industry, short line railroads and tunneling contractors, today announced unaudited financial results for the third quarter of fiscal year 2026.
Mr. Shrewsbury, CEO and Chairman of TX Rail Products, Inc., commented, "Our third quarter, reflect the continued strength of our business, with revenue increasing more than
Third Quarter Fiscal Year 2026 Financial Summary
Revenue for the third fiscal quarter ended June 30, 2026, was
Cost of goods sold for the third fiscal quarter ended June 30, 2026, was
Gross margin for the third fiscal quarter ended June 30, 2026, was
Selling, general and administrative expenses for the third fiscal quarter ended June 30, 2026, were
Interest expense and other, net for the third fiscal quarter ended June 30, 2026, was (
Net income for the current third fiscal quarter was
Year-to-Date 2026 Financial Summary
Revenue for the nine months ended June 30, 2026, was
Cost of goods sold was
Gross margin for the nine months ended June 30, 2026, was
Selling, general and administrative expenses for the nine months ended June 30, 2026, were
Interest expense and other, net, was (
Net income for the current nine-month period was
For the nine months, ended June 30, 2026, cash and cash equivalents were
Net cash provided by operating activities was
Accounts receivable was
Inventory was
Forward-Looking and Cautionary Statements
This press release contains “forward-looking statements” under applicable securities law. When used, the words “may”, “will” "believe", "anticipate", "estimate", "project", "should", "expect", "plan”, “targets”, “assume" and similar words or expressions, or the negative thereof that do not relate solely to historical matters identify forward-looking statements. Forward-looking statements are based on our current plans, expectations, estimates, projections and assumptions regarding our future business and financial performance. Forward-looking statements concerning future plans or results are necessarily only estimates and actual results could differ materially from expectations. These forward looking statements, including the statements made by Mr. Shrewsbury and statements regarding our outlook for 2026, involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, from those expressed or Implied by such forward looking statements, including the following: our ability to implement our business strategy; our financial strategy; a downturn in economic environment; our failure to meet growth and productivity objectives; a failure of our innovation initiatives; risks from investing in growth opportunities; fluctuations in financial results and purchases; the impact of local legal, economic, political and health conditions; major customer concentration/nonrecurrence; collectability and timing of receivables; tariffs/imports restrictions; availability and covenant compliance under debt; reliance on related party financing /guarantees; adverse effects from environmental matters and tax matters; ineffective internal controls; our use of accounting estimates; our ability to attract and retain key personnel and our reliance on critical skills; impact of relationships with critical suppliers; currency fluctuations and customer financing risks; the impact of changes in market liquidity conditions and customer credit risk on receivables; our reliance on third party distribution channels; Securities and Exchange Commission regulations related to trading in "penny stocks;" the continued availability of certain financing provided by our CEO; and other risks, uncertainties and factors. There can be no assurance our plans, expectations or objectives will be achieved. You are cautioned not to place undue reliance on such forward-looking statements. Any forward-looking statement in this release speaks only as of the date on which it is made. We assume no obligation to update or revise any forward-looking statement except as required by applicable securities law.
Contacts
Investor Relations:
Brett Maas
Hayden IR
txrp@haydenir.com
646-536-7331
William “Buck” Shrewsbury
Chairman and CEO TX Rail Products, Inc.
(606) 928-3131
| – Tables Follow – |
| TX RAIL PRODUCTS, INC. | ||||||||
| BALANCE SHEETS | ||||||||
| Unaudited | ||||||||
| June 30, | September 30, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 22,726 | $ | 111,213 | ||||
| Accounts receivable, net | 2,867,817 | 1,000,770 | ||||||
| Inventory | 5,824,553 | 5,099,161 | ||||||
| Other current assets | 27,331 | 16,079 | ||||||
| Total current assets | 8,742,427 | 6,227,223 | ||||||
| Property and equipment, net | 278,645 | 315,662 | ||||||
| Total Assets | $ | 9,021,072 | $ | 6,542,885 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Accounts payable | $ | 1,499,382 | $ | 119,737 | ||||
| Accrued expenses | 10,000 | 10,000 | ||||||
| Accrued expenses-related party | 668,523 | 855,773 | ||||||
| Other current liability | 119,714 | 120,458 | ||||||
| Total current liabilities | 2,297,619 | 1,105,968 | ||||||
| Line of Credit (Note4) | 2,000,000 | 1,999,453 | ||||||
| Note payable-related party (Note7) | 2,000,000 | 2,000,000 | ||||||
| Total Liabilities | 6,297,619 | 5,105,421 | ||||||
| Commitments and contingencies (Note 2) | ||||||||
| Preferred stock: no par value, 1,000,000 shares authorized no shares outstanding | – | – | ||||||
| Common stock: no par value, 250,000,000 shares authorized, 45,000,000 shares issued and outstanding at June 30, 2026 and September 30, 2025 | 8,703,344 | 8,703,344 | ||||||
| Additional paid-in capital | 4,809,295 | 4,809,295 | ||||||
| Accumulated deficit | (10,789,186 | ) | (12,075,175 | ) | ||||
| Total stockholders' equity | 2,723,453 | 1,437,464 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 9,021,072 | $ | 6,542,885 | ||||
| TX RAIL PRODUCTS, INC. | ||||||||||||||||
| STATEMENTS OF OPERATIONS | ||||||||||||||||
| Unaudited | ||||||||||||||||
| THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | 3,009,544 | $ | 1,851,909 | $ | 10,049,415 | $ | 6,099,706 | ||||||||
| Cost of goods sold | (2,223,506 | ) | (1,300,212 | ) | (7,509,550 | ) | (4,486,243 | ) | ||||||||
| Gross profit | 786,038 | 551,697 | 2,539,865 | 1,613,463 | ||||||||||||
| Selling, general and administrative expenses | 368,876 | 266,093 | 1,170,705 | 773,059 | ||||||||||||
| Income from operations | 417,162 | 285,604 | 1,369,160 | 840,404 | ||||||||||||
| Interest expense | (28,494 | ) | (7,534 | ) | (87,516 | ) | (24,426 | ) | ||||||||
| Charitable contribution | (300 | ) | (300 | ) | ||||||||||||
| Other income, net | 19 | 19,487 | 4,345 | 26,514 | ||||||||||||
| Net income | $ | 388,687 | $ | 297,257 | $ | 1,285,989 | $ | 842,192 | ||||||||
| Basic earnings per common share | $ | 0.01 | $ | 0.01 | $ | 0.03 | $ | 0.02 | ||||||||
| Weighted average common shares outstanding | 45,000,000 | 45,000,000 | 45,000,000 | 45,000,000 | ||||||||||||
| TX RAIL PRODUCTS, INC. | ||||||||
| STATEMENTS OF CASH FLOWS | ||||||||
| Unaudited | ||||||||
| Nine Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 1,285,989 | $ | 842,192 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation expense | 37,017 | 37,018 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (1,867,047 | ) | (308,367 | ) | ||||
| Inventory | (725,392 | ) | (2,644,687 | ) | ||||
| Deposits for purchased products | – | 91,702 | ||||||
| Other current assets | (11,252 | ) | 30,269 | |||||
| Accounts payable and accrued expenses | 1,379,645 | 1,427,558 | ||||||
| Other current liabilities | (744 | ) | (59,400 | ) | ||||
| Net cash provided (used) by operating activities | 98,216 | (583,715 | ) | |||||
| Investing activities: | ||||||||
| Net cash from investing activities | – | – | ||||||
| Financing activities: | ||||||||
| Proceeds/(Payment) on Line of Credit, net | 547 | 548,247 | ||||||
| Proceeds from related party transactions | 25,000 | 97,300 | ||||||
| Payment for related party transactions | (212,250 | ) | (134,972 | ) | ||||
| Net cash provided (used) in financing activities | (186,703 | ) | 510,575 | |||||
| Increase/(decrease) in cash and cash equivalents | (88,487 | ) | (73,140 | ) | ||||
| Cash and cash equivalents at beginning of period | 111,213 | 113,976 | ||||||
| Cash and cash equivalents at end of period | $ | 22,726 | $ | 40,836 | ||||
| Cash paid during the period for interest | $ | 87,516 | $ | 24,426 | ||||
